Grayscale prepares to launch LINK ETF on NYSE Arca with record LINK reserve

Grayscale is preparing to launch its LINK ETF on NYSE Arca. Ahead of the launch, the fund accumulated a record reserve of LINK. 

Grayscale is preparing to transform its Chainlink Trust into a full ETF, soon launching on NYSE Arca. The product has already been tested, and Grayscale accumulated a record supply of LINK a few weeks ahead of the launch. 

The Grayscale Chainlink Trust ETF (GLINK) is not registered under the Company Act of 1940, meaning the fund holds a higher risk. However, this has allowed GLINK to start trading immediately on NYSE Arca.

The exchange recently welcomed multiple ETFs after a shorter listing procedure, boosting inflows into SOL. 

Grayscale kept accumulating LINK in the past year, recently reaching near-record supply. | Source: Arkham Intelligence

Grayscale warned that an investment in GLINK is still potentially volatile. The fund is also not a direct investment in LINK. 

LINK trades near yearly lows

LINK remains an actively traded legacy asset with multiple centralized listings. The token also allows for staking, with some of the supply locked. 

Currently, LINK has a total supply of 1B tokens, with 631M in circulation. LINK tokens are 59% unlocked, with only regular linear unlocks until the end of 2027. 

Despite the imminent launch of the ETF, LINK remained near its yearly lows. LINK has been sliding for the past three months, down to $12.07. Despite the increased interest, LINK has failed to break new all-time highs or retain its levels above $50. 

LINK trading volumes are also near one-year lows. LINK open interest also crashed to lows of $235M, showing the token hardly invites speculative interest. The asset also does not reflect the key roles of the Chainlink project, and has taken the path of legacy altcoins and tokens. 

LINK supply on exchanges near all-time lows

LINK has been flowing out of exchanges for the past month, with supply near all-time lows on both spot and derivative exchanges. The recent buying from Grayscale coincides with a supply crunch on spot exchanges. 

LINK supply on spot exchanges diminished significantly since October 13, but the market price has not responded to the supply crunch. | Source: Cryptoquant

Spot exchanges only hold around 8M LINK, while Grayscale holds 1.3M. The coming weeks will show if ETF demand changes the outlook for LINK, and if there is enough OTC supply or other sources of demand. For now, even the data of a spot exchange supply crunch has failed to lift LINK. 

Despite the near-ubiquitous presence of Chainlink data and high-profile partnerships, the project produces only around $15K in fees daily. Oracle usage has been rising, but failed to boost demand for LINK. 

LINK is still expected to make a comeback after a recent rise in mindshare by 30%. The token has 0.4% of mindshare on social media, as the Chainlink army’s pull does not hold up well against other projects and tickers. Additionally, LINK is still under pressure from team selling. 

Also, there is no real wave to make LINK a reserve asset for treasury companies, with Chainlink Labs standing alone in that category. 

Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program